State Street’s quarterly profit fell in the third quarter as the bank reported $36bn of outflows from its asset management division.

The Boston-based firm’s net income totaled $507m between July and September, down from $539m a year ago. Third quarter revenue stood at $2.62bn.

Total fees fell 1.1% to $2.08bn. Expenses increased 1.1% from a year earlier to $1.98bn on higher information technology and acquisition costs.

Net inflows of $12bn into ETFs were offset by a $36bn outflow from State Street’s wider asset management business, primarily from cash and institutional clients.

State Street completed its purchase of GE Asset Management over the summer. 

Chief executive Joseph Hooley said the integration is "well underway" and client retention rates had so far exceeded objectives.

Assets under custody and administration increased 7% year-on-year in Q3 to $29.2trn.

New asset servicing mandates during the third-quarter of 2016 totaled $212bn.

State Street told investors this week it has renewed a back-office investment operations mandate with fund management giant PIMCO.

Brokerage and other fees decreased by 1.8% to $108m compared to the third-quarter of 2015, primarily due to lower transition management revenue.

Securities finance revenue increased to $136m compared to $113m a year ago. The bank put this down to increased revenue from enhanced custody and agency lending.

Chief executive Hooley added that the business remains focused on five strategic priorities for 2016.

These include enhancing State Street's digital offering; driving growth from core businesses; investing in new products and solutions; focusing on expense management and leveraging the capital position for the benefit of shareholders.